Executive Board of the International Monetary Fund (IMF) on Friday approved a disbursement under the Rapid Credit Facility (RCF) equivalent to US$91 million to help Malawi meet the urgent balance of payment (BOP) needs stemming from the COVID-19 pandemic.
IMF Malawi mission chief Pritha Mitra (L) and Minister of Finance Joseph Mwanamvekha; The disbursement has been welcomed
The IMF notes in a statement that Malawi is being severely affected by the COVID-19 pandemic and that spillovers from the sharp global slowdown as well as the economic disruption in the region are weighing on international trade, tourism, remittances, investment, and consumption.
“The national lockdown introduced to contain the pandemic has also impacted the near-term economic outlook, which has deteriorated significantly, with large uncertainties surrounding the duration and spread of the pandemic.”
However Malawi government authorities have proactively responded to the pandemic with a national response plan—supported by the World Health Organization and other development partners with measures to preserve macroeconomic stability while protecting the vulnerable.
Key elements include increased health sector outlays, supporting incomes and food security of the most vulnerable households with expanded social assistance and grain purchase programs, and easing liquidity constraints in the banking system.
However, the IMF says the deteriorating macroeconomic outlook and policy responses to mitigate the impact of the pandemic on Malawi are creating an urgent BOP need.
It’s says it’s financing will help fill part of the external financing gap and catalyze other concessional financing.
Following the Executive Board’s discussion of Malawi, Mr. Zhang, Deputy Managing Director and Chair, said the IMF’s emergency financing under the Rapid Credit Facility will help the authorities meet the large external financing gap and catalyze further assistance from the international community.
“Additional concessional donor support will be critical to close the remaining external financing gap and facilitate the needed interventions to ease the economic and social impacts of the pandemic, while preserving Malawi’s hard-earned macroeconomic stability.”
Zhang said widening of the budget deficit is appropriate in the near-term, given the fiscal costs associated with the economic slowdown and critical additional health care and social spending needs, which should be executed transparently and targeted to the most affected parts of society.
“The authorities’ commitment to the audit of COVID-19 related spending is welcome. Once the crisis abates, it will be important to safeguard medium-term debt sustainability by boosting domestic revenue mobilization and enhancing public financial management, ” Zhang says.
This money will be shared by the president and his cronie friends like amand and zunaid Sattar they will sell mask for $10 dollars each which will never be delivered this money will not get to the poor it will be another CORONAGATE AND NO ONE WILL BE ACCOUNTABLE
nafundo zalo
3 years ago
kuona conco !!! eeeeeee iyi yotentha ma figures aikilatu. palibeso judo olo chess.
botoman ndi japie kumenekoooooo.
pano nde acina Bangwe 1 mwathana nao bwa
Peter The internal community acknowledges you honoubly and they know that you are dealing with ignorant mbuli people.That is why they have no time to listen to their ignorant noises.Malawi is full of jelous people.No Malawi so called analysts comments.When donation is coming like this , what does this mean? . Question to the analysts.
Izi sizosekerera. Mukubwereka ndalama zoti botomani ndi jappie azikagawana zikatero ana athu azizabwedza. Machaba anu
chataika
3 years ago
Thumbs up to IMF! A friend in need is a friend indeed. You have demonstrated it and to Malawians its a plus that together we can. So lets join hands in fighting against Covid19 and not politicize covid because some of you claiming there is no covid shame on you! If there was no covid IMF would not have given such huge sums of money to malawi govt.
Wakuba
3 years ago
Ndalamazo atadye ndi anthu andale m’malo mwa madotolo ndi ma nurse, paja ntchito yanu njakuba. Ana anjoka inu.
Mariana
3 years ago
Bwana Botomani and his crew are over the moon hearing of such news. I think he will build a bridge from Kachulu to Chisi island with that loot. Keep it up man!
This money will be shared by the president and his cronie friends like amand and zunaid Sattar they will sell mask for $10 dollars each which will never be delivered this money will not get to the poor it will be another CORONAGATE AND NO ONE WILL BE ACCOUNTABLE
kuona conco !!! eeeeeee iyi yotentha ma figures aikilatu. palibeso judo olo chess.
botoman ndi japie kumenekoooooo.
pano nde acina Bangwe 1 mwathana nao bwa
Peter The internal community acknowledges you honoubly and they know that you are dealing with ignorant mbuli people.That is why they have no time to listen to their ignorant noises.Malawi is full of jelous people.No Malawi so called analysts comments.When donation is coming like this , what does this mean? . Question to the analysts.
Koma andunawa kodi ……….?
Izi sizosekerera. Mukubwereka ndalama zoti botomani ndi jappie azikagawana zikatero ana athu azizabwedza. Machaba anu
Thumbs up to IMF! A friend in need is a friend indeed. You have demonstrated it and to Malawians its a plus that together we can. So lets join hands in fighting against Covid19 and not politicize covid because some of you claiming there is no covid shame on you! If there was no covid IMF would not have given such huge sums of money to malawi govt.
Ndalamazo atadye ndi anthu andale m’malo mwa madotolo ndi ma nurse, paja ntchito yanu njakuba. Ana anjoka inu.
Bwana Botomani and his crew are over the moon hearing of such news. I think he will build a bridge from Kachulu to Chisi island with that loot. Keep it up man!
Botomani ndi Jappie anola kale mano
Nde timati the suggesti9n is!!!!!!!!!!